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NEWS LETTER NEWS LETTER NEWS LETTER NEWS LETTER
ISSUE No ISSUE No ISSUE No ISSUE No ———— 15 15 15 15 March 2017March 2017March 2017March 2017
WORLD WIDE CLAIMS SERVICES
---- ““““SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” ----
Tel - 00971 4 3510705; Fax - 00971 4 3510709; Email - [email protected] ; P.O. Box. - 114900, Dubai
WWW.CLAIMSSERVICESUAE.COM
WEIGHT OF CONTAINERS
Very often shippers misdeclare the weight of the container which leads to disastrous consequences. Be-
sides affecting the safety of the ship, there have been instances of cranes getting damaged and injuries/
death of stevedores. Though there were recommendations from various forums, the problem continues to
persist.
Safety of Life at Sea Convention ( SOLAS) has adopted a Resolution for all laden containers to have a
document of Verified Gross Mass ( VGM) or alternatively, their weight has to be ascertained before they
“Waves are inspiring, they fall but never fail to rise again.”
UAE UPDATES
Dubai Maritime sector – It is reported that the Maritime sector accounts for seven percent of Dubai’s
gross domestic product. This reflects a healthy increase from the previous year. There are over 5000
companies involved in various maritime activities such as shipping, ports, marine repairs etc. The Mari-
time authority has created an ideal environment that attracts maritime services from all over the world.
This confirms Dubai’s position as an important Maritime centre in the world.
Dubai Maritime Cluster office under the Dubai Maritime City Authority (DMCA) has been operating
with the object of making the Emirate a leading global maritime hub.
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NEWS LETTER NEWS LETTER NEWS LETTER NEWS LETTER
ISSUE No ISSUE No ISSUE No ISSUE No ———— 15151515 March 2017March 2017March 2017March 2017
WORLD WIDE CLAIMS SERVICES
---- ““““SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” ----
Tel - 00971 4 3510705; Fax - 00971 4 3510709; Email - [email protected] ; P.O. Box. - 114900, Dubai
WWW.CLAIMSSERVICESUAE.COM
are loaded on board a ship. It is the responsibility of the shipper to produce these documents. This practice
was supposed to come to effect from first 1 July 2016.
Needless to say, it is a step in the right direction. However, some teething problems are expected. For in-
stance, there will be some confusion as to who exactly is the responsible shipper who should produce the
documented weight. In many instances, a Freight Forwarder is named as the Shipper on the bill of lading
although they have no personal knowledge about the weight and contents of the shipped containers. They
have to rely on the information given by their customer. Besides, many Ports may not have sufficient facil-
ity to weigh large number of containers. Lack of space and eventual congestion may pose problems inside
the ports. In the circumstance, it may take some time to get this practice streamlined in all Ports.
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CARGO DAMAGE
A Merchant based in Dubai signed a Booking Note with a Charterer in Amsterdam for shipping a con-
signment of Plywood and MDF boards from China to Tripoli, Libya. On arrival of the vessel at Tripoli,
substantial quantity of the cargo was found damaged. The consignee rejected the entire consignment and
refused to take delivery. A joint survey was carried out attended by surveyors representing the consignee,
Plan well in every walk of life.
Remember the Carpenter and Tailor’s rule -
“measure twice, for you can cut only once”.
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NEWS LETTER NEWS LETTER NEWS LETTER NEWS LETTER
ISSUE No ISSUE No ISSUE No ISSUE No ———— 15 15 15 15 March 2017March 2017March 2017March 2017
WORLD WIDE CLAIMS SERVICES
---- ““““SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” ----
Tel - 00971 4 3510705; Fax - 00971 4 3510709; Email - [email protected] ; P.O. Box. - 114900, Dubai
WWW.CLAIMSSERVICESUAE.COM
“Nothing is permanent in this world, not even our troubles”
cargo Underwriters, Owners and Charterers. It was discovered that a major part of this consignee’s cargo
was carried on deck and the vessel had experienced heavy weather during the voyage.
The merchant had a Marine Open Cover incorporating ICC (A). The Policy further stated that ICC (C)
will apply for non containerised on deck shipments. The cargo Underwriters refused to cover the damages
in respect of the cargo carried on deck as it did not result from any of the named perils under ICC (C).
They were only prepared to pay for the damages to the cargo carried under deck. Without the support of
the cargo Underwriters, the Insured was left to face a substantial loss. However, the insurance Brokers
were keen to support their customer and instructed WWCS to assist them.
The issue was first taken up with the Insurers pointing out that the Insured did not authorize loading of the
cargo on deck which was done by the Charterer without their knowledge. However, the Insurers did not
accept this view. A legal action against the cargo Underwriter was considered, but it was decided to keep
that option open while attempt was made to recover the full claim from the ship Owners. It was therefore
decided not to accept the offered settlement in respect of the under deck cargo immediately.
.
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NEWS LETTER NEWS LETTER NEWS LETTER NEWS LETTER
ISSUE No ISSUE No ISSUE No ISSUE No ———— 15 15 15 15 March 2017March 2017March 2017March 2017
WORLD WIDE CLAIMS SERVICES
---- ““““SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” ----
Tel - 00971 4 3510705; Fax - 00971 4 3510709; Email - [email protected] ; P.O. Box. - 114900, Dubai
WWW.CLAIMSSERVICESUAE.COM
The ship was arrested and subsequently released after the ship Owner’s P & I Club issued a LOU for the
full value of the cargo amounting to USD One Million. The claim was then pursued against the Owners
under the bills of lading issued by them. Simultaneously, a claim was lodged against the Charterer for
the consequences of loading part cargo on deck without approval.
Discussions commenced with the P&I Club and their lawyers in London. They tried to reject liability
relying on the defence of heavy weather and insufficient packing which was not accepted by us. They
also produced another set of bills of lading purportedly issued by the Charterers. These were Congen
bills of lading and incorporated the clause – “ship not responsible for cargo loaded on deck”. Besides,
these bills of lading were subject to English Law and Jurisdiction. The Merchant had no knowledge of
these bills of lading. On taking up this issue with the Charterers, they advised that they had initially is-
sued these bills of lading as required by the Agent at loadport and subsequently replaced them with Own-
ers’ bills of lading. The P&I Club tried to reject the claim on the basis of the clauses on these bills of
lading. They further argued that as per the B/L terms, the claim should be decided by arbitration in Lon-
don. It was pointed out to them that these bills of lading were replaced with Owners’ bills of lading
which evidenced the actual contract of carriage and moreover it was against the Owner’s bills of lading
that the cargo was released to the consignee. It was further impressed upon them that as per the LOU,
ship owner has agreed to abide by the judgment of Lebanese court. However, they continued to insist on
London Arbitration.
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“Happiness isn’t getting all you want.
“It is about enjoying all you have.”
NEWS LETTER NEWS LETTER NEWS LETTER NEWS LETTER
ISSUE No ISSUE No ISSUE No ISSUE No ———— 15 15 15 15 March 2017March 2017March 2017March 2017
WORLD WIDE CLAIMS SERVICES
---- ““““SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” SOLUTION FOR ALL YOUR CLAIMS” ----
Tel - 00971 4 3510705; Fax - 00971 4 3510709; Email - [email protected] ; P.O. Box. - 114900, Dubai
WWW.CLAIMSSERVICESUAE.COM
In the meantime, it was decided to accept the part payment from cargo Underwriter and pursue the Ship
owner for the balance claim. Upon receiving the payment, the Merchant subrogated their rights upto the
settled amount to the Underwriter. Following this, they were also required to hand over the P&I Club’s
LOU to the Underwriter so that they can pursue their recovery against the Ship owner. This complicated
the situation as the LOU was also required by the Merchant to pursue their part of the claim against the
ship owner. The negotiations with the P&I Club were therefore speeded up and a reasonable settlement
was arrived at, albeit with great difficulty.
Further efforts were made to claim the unrecovered amount from the Charterer. However, this was not
successful as the Charterers refused to entertain the claim, maintaining that the Owners are solely to
blame. Given that the Charterer had no tangible assets, a legal action was not pursued.
There were too many complications in this matter thanks to the Charterers who arranged the loading
and documentation. A Merchant should always monitor the cargo handling and documentation instead
of blindly relying on the Charterers.
Despite the fact that the LOU referred to Lebanese jurisdiction, the P&I Club tried their best to take the
matter to Arbitration in London. But they did not succeed due to successful intervention of WWCS. It is
very important to ensure that the LOU is properly worded without leaving any doubt about the applica-
ble Law and Jurisdiction.
Though the Insured did not receive support from their Insurer, WWCS was at hand to assist them from
the beginning of the incident till successful conclusion of the claim – advising on the Insurer’s position,
arresting the vessel, obtaining properly worded LOU, successfully thwarting the P&I Club’s attempts to
take the issue to arbitration and finally achieving a reasonable recovery.
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“Success is a measure as decided by others.
Satisfaction is a measure as decided by you”.